Pomerantz Law Firm Initiates Class Action Against Civitas Resources, Inc. Following Allegations of Misleading Statements
On June 7, 2025, Pomerantz LLP announced the establishment of a class action lawsuit against Civitas Resources, Inc. This action arises in response to specific allegations that the company and certain of its officers have breached federal securities laws, thus raising serious concerns among investors. The lawsuit was lodged in the United States District Court for the District of New Jersey, with the case number recorded as 25-cv-03791. It pertains to all individuals and entities who procured or otherwise obtained Civitas's securities between February 27, 2024, and February 24, 2025, a period now referred to as the "Class Period."
The primary aim of this class action is to recover damages stemming from the alleged misconduct of the defendants. Specifically, the plaintiffs are pursuing remedies under Sections 10(b) and 20(a) of the Securities Exchange Act, in conjunction with Rule 10b-5, which governs securities fraud. Investors are encouraged to participate in this action, with an upcoming deadline to volunteer as Lead Plaintiff set for July 1, 2025. Interested parties can access the Complaint at www.pomerantzlaw.com or contact attorney Danielle Peyton for further discussion on the matter.
Civitas Resources operates as an independent exploration and production firm, primarily engaged in oil and liquids-rich natural gas operations centered in the Denver-Julesburg (DJ) Basin, Colorado and the Permian Basin located in Texas and New Mexico. As per the organization's records by December 31, 2024, Civitas claimed ownership of a significant working interest across a net total of 530,200 acres. The company's revenue is derived from the sale of crude oil, natural gas, and natural gas liquids, which makes the maintenance of high oil production volumes a pivotal element of its growth strategy.
During the year 2024, Civitas reportedly sustained a steady output in oil production while also accelerating its operations aimed at turning in new lines—characterized as newly drilled oil wells that are designated as operational and added to the company's production inventory. However, unbeknownst to the investors, the company allegedly reached a peak in DJ Basin oil production during the fourth quarter of 2024, coinciding with a gradual slowdown in the introduction of new operational lines.
The allegations presented in the Complaint assert that throughout the Class Period, the defendants issued materially false and misleading statements concerning both the company’s operations and future business prospects. Specifically, defendants failed to disclose vital information, such as the anticipated reduction of oil production in 2025 due to significant declines following the noted production peak.
Moreover, the lawsuit alleges that increasing production would necessitate the acquisition of additional acreage and development sites, thereby leading the company into significant debt and forcing asset sales to manage acquisition costs effectively. Concerns also arose regarding Civitas's financial milieu, with indications that drastic cost-reduction measures, including workforce reductions, were likely necessary. The overarching theme was an assertion that the company's favorable public statements were grossly overstated.
This became particularly evident on February 24, 2025, when Civitas disclosed its financial results for the fourth quarter and the entirety of 2024. The company reported revenues of $1.29 billion, which fell short of market expectations by approximately $3.44 million. Furthermore, Civitas's earnings per share for the quarter was recorded at $1.78, again disappointing consensus forecasts. These disclosures were swiftly followed by news of a substantial workforce reduction, purportedly aimed at consolidating the company's low-cost operations.
Market analysts responded with caution, quickly reflecting upon the striking news concerning Civitas’s diminished production guidance for 2025. Following the announcements, Civitas experienced a notable decline in its stock price, which plummeted by 18.15%, closing at $40.35 per share on February 25; a clear indication of market concerns regarding the company's future revenue and production capabilities.
Given the extensive implications of this class action, the Pomerantz Law Firm is positioned as a prominent entity advocating for the rights of investors affected by alleged corporate misconduct. Founded by Abraham L. Pomerantz, regarded as the dean of the class action bar, the firm has a long-standing tradition of holding corporations accountable for securities fraud and breaches of fiduciary duty. With notable successes recorded over the decades, including billions recovered for stakeholders, the firm strives to uphold investor interests diligently.
This case continues to underscore the significance of transparency and integrity within corporate communication, serving as a stark reminder of the critical nature of accurately disclosing material information to investors. As this legal battle progresses, the determination of the class members seeking justice remains a focal point within the landscape of corporate governance and securities law.
The primary aim of this class action is to recover damages stemming from the alleged misconduct of the defendants. Specifically, the plaintiffs are pursuing remedies under Sections 10(b) and 20(a) of the Securities Exchange Act, in conjunction with Rule 10b-5, which governs securities fraud. Investors are encouraged to participate in this action, with an upcoming deadline to volunteer as Lead Plaintiff set for July 1, 2025. Interested parties can access the Complaint at www.pomerantzlaw.com or contact attorney Danielle Peyton for further discussion on the matter.
Civitas Resources operates as an independent exploration and production firm, primarily engaged in oil and liquids-rich natural gas operations centered in the Denver-Julesburg (DJ) Basin, Colorado and the Permian Basin located in Texas and New Mexico. As per the organization's records by December 31, 2024, Civitas claimed ownership of a significant working interest across a net total of 530,200 acres. The company's revenue is derived from the sale of crude oil, natural gas, and natural gas liquids, which makes the maintenance of high oil production volumes a pivotal element of its growth strategy.
During the year 2024, Civitas reportedly sustained a steady output in oil production while also accelerating its operations aimed at turning in new lines—characterized as newly drilled oil wells that are designated as operational and added to the company's production inventory. However, unbeknownst to the investors, the company allegedly reached a peak in DJ Basin oil production during the fourth quarter of 2024, coinciding with a gradual slowdown in the introduction of new operational lines.
The allegations presented in the Complaint assert that throughout the Class Period, the defendants issued materially false and misleading statements concerning both the company’s operations and future business prospects. Specifically, defendants failed to disclose vital information, such as the anticipated reduction of oil production in 2025 due to significant declines following the noted production peak.
Moreover, the lawsuit alleges that increasing production would necessitate the acquisition of additional acreage and development sites, thereby leading the company into significant debt and forcing asset sales to manage acquisition costs effectively. Concerns also arose regarding Civitas's financial milieu, with indications that drastic cost-reduction measures, including workforce reductions, were likely necessary. The overarching theme was an assertion that the company's favorable public statements were grossly overstated.
This became particularly evident on February 24, 2025, when Civitas disclosed its financial results for the fourth quarter and the entirety of 2024. The company reported revenues of $1.29 billion, which fell short of market expectations by approximately $3.44 million. Furthermore, Civitas's earnings per share for the quarter was recorded at $1.78, again disappointing consensus forecasts. These disclosures were swiftly followed by news of a substantial workforce reduction, purportedly aimed at consolidating the company's low-cost operations.
Market analysts responded with caution, quickly reflecting upon the striking news concerning Civitas’s diminished production guidance for 2025. Following the announcements, Civitas experienced a notable decline in its stock price, which plummeted by 18.15%, closing at $40.35 per share on February 25; a clear indication of market concerns regarding the company's future revenue and production capabilities.
Given the extensive implications of this class action, the Pomerantz Law Firm is positioned as a prominent entity advocating for the rights of investors affected by alleged corporate misconduct. Founded by Abraham L. Pomerantz, regarded as the dean of the class action bar, the firm has a long-standing tradition of holding corporations accountable for securities fraud and breaches of fiduciary duty. With notable successes recorded over the decades, including billions recovered for stakeholders, the firm strives to uphold investor interests diligently.
This case continues to underscore the significance of transparency and integrity within corporate communication, serving as a stark reminder of the critical nature of accurately disclosing material information to investors. As this legal battle progresses, the determination of the class members seeking justice remains a focal point within the landscape of corporate governance and securities law.
Topics Financial Services & Investing）
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